Stock market today: Dow rises 288 points on AMZN, INTC gain

Stocks opened in positive territory on Friday and remained there through the close as a series of well-received blue-chip gains offset a dismal October jobs report. Investors also kept an eye on next week's potentially market-moving dates, which include Election Day and the next Fed meeting.

Starting with the winning news. Amazon.com (AMZN) rose 6.2% after the e-commerce giant gained a market value of $121 billion Exceed sales and profit expectations for its third quarter.

“Perhaps the biggest takeaway from the print was Amazon’s fourth-quarter operating income guidance, which called for $16 billion to $20 billion, up from $13.2 billion in Q4 2023,” says Stephen Ju (Buy) , analyst at UBS Global Research.

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While investors have expressed concerns that the company's capital expenditure initiatives will weigh on revenue and margins, Ju notes that Amazon is “trying to carefully manage headcount and operating expenses to fund its increasing capital expenditures and free cash flow generation for shareholders.” to protect”.

Intel relies on strong forecasts

Amazon's post-earnings share price performance was impressive, but that was it Intel (INTC) that was the best Dow Jones shares Today. Shares closed up 7.8% after the chipmaker reported better-than-expected sales Strong guidance for the fourth quarter.

Analysts aren't convinced this report gives the all-clear for the struggling tech company, which has and has lost 54% year to date a terrible choice for long-term investors.

“The good news is that much of the heavy lifting is behind the company as we look ahead to the final quarter of a challenging year and expect a more stable operating environment in 2025, which should notably include a return to positive adjusted free profit. “Cash flow,” says Stifel analyst Ruben Roy (Hold).

But Roy says the bad news is that Intel's artificial intelligence (AI) strategy appears to have shifted again, focusing on a longer-term approach that could put the company behind in the rapidly evolving industry.

Apple falls after earnings

Not all of today's earnings reactions were positive. Apple (AAPL), for example, fell 1.3% even as the iPhone maker reported better-than-expected results for its fiscal fourth quarter.

Instead, investors focused on declining sales in China (-0.3% year-over-year) and the company's prospects for “low-to-mid-single-digit” sales in the fiscal first quarter.

Yet Wall Street remains mostly optimistic about Apple. “Following these results, we are more confident about the AI thesis for Cupertino, which will trigger a multi-year upgrade cycle that will lead to a super cycle and ultimately drive iPhone growth into the high single digits,” says Wedbush analyst Daniel Ives (Outperform, the equivalent of a Buy).

Despite Apple's weakness, Dow Jones Industrial Average rose 0.7% to 42,052 thanks to strength in Amazon and Intel shares. The S&P 500 rose 0.4% to 5,728 and the Nasdaq rose 0.8% to 18,239.

Job growth collapses in September

Over there on Economic calendarData from the Bureau of Labor Statistics showed that the U.S. added just 12,000 new jobs in October, well below economists' estimates for 113,000 new jobs. Employment growth for August and September was revised downward by a total of 112,000 jobs.

There has been a lot of noise in this report thanks to recent hurricanes in Florida and the US Boeing (BA) Workers' strike. However, there are some ongoing signs of stability and resilience, “particularly a stable unemployment rate with robust income growth,” it said Scott AndersonChief U.S. Economist at BMO Capital Markets.

In other business news, the Institute of Supply Management (ISM) said its manufacturing purchasing managers' index (PMI) fell to 46.5% in October from 47.2% in September.

The index “has now shown declines (values below 50) in activity for virtually two years in a row,” says Wells Fargo Economist Tim Quinlan. “But the simple need to replace equipment, combined with some clarity in the post-election environment, should support upcoming investment plans.”

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